The recent TSMC investor conference has sparked a bullish sentiment in the Taiwanese stock market, leading to a significant inflow of capital on the 18th, estimated at over $1 billion in a single day. Exporters also stepped in to sell U.S. dollars, resulting in a dual surge in both stocks and currency that has excited investors. The Taiwanese dollar appreciated by 8.5 cents, closing at 32.083, marking its highest point in nearly two weeks with three consecutive days of gains. The currency market was highly active, with an impressive trading volume of $2.398 billion on that day.

Looking ahead, currency experts suggest that the strong stock market is driving the appreciation of the Taiwanese dollar. If the bullish trend continues, coupled with the fact that we are approaching the end of the month—typically a peak season for exporters selling dollars—the Taiwanese dollar might shift to a slightly upward range. There’s a possibility it could break below the 32 level and return to the 31 range, with projections indicating a short-term trading band between 31.8 and 32.2.

According to the currency analysts, foreign investors made significant purchases in the Taiwanese stock market on the 18th, coinciding with an influx of over $1 billion. Exporters were also actively selling dollars, creating a lively trading environment in the currency market, which fueled the appreciation of the Taiwanese dollar. By the end of the day, the currency rose by 8.5 cents, closing at 32.083, with total trading volume surpassing $2 billion, reaching $2.398 billion.

Central bank statistics reveal that in the past week, the Taiwanese dollar appreciated by 9.9 cents, representing a 0.31% increase.

The currency experts attribute this positive momentum partly to TSMC’s investor briefing on the 17th, during which the company’s outlook for Q4 was encouraging. This news attracted significant market interest, and on the 18th, TSMC’s stock price closed at NT$1,085, setting a new all-time high. This bullish sentiment for TSMC has invigorated the stock market and drawn in hot money, making the currency market quite dynamic. However, the recent resilient U.S. economic data raises questions about whether the Federal Reserve will taper its interest rate cuts, presenting a variable that could influence the sustainability of the bullish trends in both stocks and currency.